Bank of England to make interest rate announcement next week as cuts 'somewhat closer'
01.05.2024 - 12:47
/ manchestereveningnews.co.uk
The Bank of England (BoE) will announce its latest review of the interest rate next week.
The Bank's Monetary Policy Committee (MPC) will meet on Thursday, May 9, to decide whether they will increase interest rates, decrease them, or keep them the same. Currently, interest rates have been frozen at 5.25 per cent and have remained at that level for the past few months.
The interest rate, often referred to as the base rate, is used by banks to help determine their mortgage rates for customers alongside other payback loans. This means any changes to the base rate could have a direct effect on your personal finances.
Read more: Interest rate cuts 'somewhat closer' than last month ahead of Bank of England announcement
Consumer Price Index inflation dipper to 3.2 per cent in March and is expected to move closer to the Bank's 2 per cent target rate in April, following another drop in energy prices. Meanwhile, according to the British Retail Consortium, the latest annual shop price inflation slowed to 0.8 per cent in April, compared to 1.3 per cent in March.
Helen Dickinson, BRC chief executive, said the latest figures displayed that prices were "showing signs of normalising providing relief to households".
One of the largest economic factors that may affect the Bank's interest rate decision this month is the latest increase to the UK's minimum wage. With the national living wage shooting up by almost 10 per cent, some economists previously warned that it could make it harder to keep inflation low.
Ashley Webb, UK economist at consultancy Capital Economics said: "The fear is that the rise this year will contribute to stickier wage growth and inflation.”
However, some have downplayed the impact, with only around 4.9 per cent of